FAST FIVE: Kudlow Calls For "Back To Work Bonus" As Americans Prefer Sitting On Couch Rather Than Working
We noted last week that the CARES Act, which included a $1,200 stimulus check and an additional $600 weekly payment for the unemployed, has led to a labor shortage at one Arizona restaurant. Times Square Italian Restaurant owner Paullette Cano said with an “unemployment rate at almost 20%, you'd think we'd have a lot of applicants coming in, but we're not.” Cano said the CARES Act and unemployment checks have resulted in many of her furloughed employees staying home.
They collectively told her their pay from the government is much better than working at her restaurant. “They don't want to come back to work,” she said.
1 focus concerning China – echoing comments that Trump himself made recently.
Circling back to Kudlow's comment on the “back to work” bonus,” we recently penned “When Work Is Punished: Did The 'Generous' CARES Act Just Guarantee High Unemployment Is Here To Stay?” — where it was noted the CARES Act has the potential to create an entirely new generation of welfare serfs, subsisting on significant welfare benefits with no incentive to 'get back to work', even after the lockdowns are lifted.
This will lead to a labor market that won't recover anytime soon, thwarting any hopes of a V-shaped recovery this year. The virus, to its credit, has triggered a dangerous policy response by the government of helicopter money that will effectively delay the recovery.